Sixth Street Specialty Lending Earnings: What To Look For From TSLX
Business development company Sixth Street Specialty Lending (NYSE:TSLX) will be reporting earnings this Tuesday afternoon. Here’s what you need to know.
Sixth Street Specialty Lending missed analysts’ revenue expectations last quarter, reporting revenues of $93.4 million, down 19.7% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EPS estimates.
Is Sixth Street Specialty Lending a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Sixth Street Specialty Lending’s revenue to decline 17.7% year on year, a further deceleration from the 5.6% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Sixth Street Specialty Lending has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Sixth Street Specialty Lending’s peers in the specialty finance segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Farmer Mac delivered year-on-year revenue growth of 24.9%, beating analysts’ expectations by 3.4%, and PROG reported revenues up 22.3%, topping estimates by 0.8%. Farmer Mac traded up 3.5% following the results while PROG was down 4.4%.
Read our full analysis of Farmer Mac’s results here and PROG’s results here.
There has been positive sentiment among investors in the specialty finance segment, with share prices up 2.4% on average over the last month. Sixth Street Specialty Lending is up 1.8% during the same time and is heading into earnings with an average analyst price target of $19.70 (compared to the current share price of $17.01).
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